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Keyless Entry Systems For Your Truck Back in the 80's car theft using hot-wiring technology was becoming more and more prevalent. To stop this, General Motors introduced transponder keys or "chip keys". of keys for cars have an electronic chip in the head of the key that sends a code to your car. If the code matches, your engine will start. Transponder Keys A transponder key is equipped with an embedded microchip that sends a signal when the key is put into the ignition. The car's onboard computer verifies th